Mergers lucrative for departing CEOs, but not necessarily shareholders


AP: Critics say “golden parachute” deals are motivation to make so-so deals.

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AP: Critics say “golden parachute” deals are motivation to make so-so deals.

The CEOs who’ve decided to sell in the 10 biggest U.S. deals this year are set to rake in an estimated $430 million in “golden parachute” payments, according to a study done by pay-tracking firm Equilar at the request of The Associated Press. Translation: It would take the typical American household 847 years of work to get what the average CEO will receive in one fell swoop.

The payoffs are often negotiated when CEOs are hired. They’re designed to compensate chief executives for losing their jobs and years of big pay so they won’t stand in the way of a sale that is good for shareholders.

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